New Delhi: Monster Careers revenue increased 23% to $317 million, compared with $258 million in last year’s fourth quarter, led by international revenue growth of 59% to $143 million.
North American Careers revenue increased 3% to $174 million in the fourth quarter of 2007. Internet advertising and fees revenue was $37 million compared with $40 million in last year’s comparable quarter. Consolidated operating income was aided by a $3 million benefit from foreign exchange rates.
Monster Worldwide’s deferred revenue balance at 31December, 2007 grew 18% to $524 million over last year’s fourth quarter balance of $444 million.
Income from continuing operations was $45 million, or $0.36 per diluted share, in the fourth quarter of 2007, compared to $40 million or $0.31 per diluted share in the 2006 period. Included in income from continuing operations for the three months ended December 31, 2007 is a $0.05 per diluted share impact from costs associated with the restructuring plan, the ongoing stock option investigation and the security breach of the company’s resume database in August.
These pro forma adjustments are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the nearest GAAP measure in the accompanying tables. Excluding these costs, income from continuing operations in the fourth quarter of 2007 was $52 million, or $0.41 per diluted share, compared to $49 million, or $0.37 per diluted share in the prior year.
As on 31December, 2007, the company’s net cash position was $578 million compared with $573 million at 31December, 2006. Cash generated from operating activities was $64 million compared to $45 million in the fourth quarter of 2006.
Capital expenditures totaled $16 million in the fourth quarter of 2007. During the quarter, the company repurchased 2.8 million shares of its common stock for an aggregate cost of $97 million. For the year ended 31December, 2007, the company repurchased 7.3 million shares of common stock for a total cost of $252 million.
The Board of Directors also increased the company’s current stock repurchase authorization by an additional $100 million, bringing the total authorization to $450 million. Giving effect to the increased authorization and repurchases to date, they currently have $253 million remaining under the programme.
Sal Iannuzzi, chairman and CEO, Monster Worldwide, said “During the quarter, we continued the aggressive strategic investment programme which we initiated early in the third quarter of 2007. It was designed to re-energize the Monster brand and foster product innovation and enhanced technology. Monster’s strong 19% global revenue growth, combined with the savings generated from the restructuring plan that has funded investments, has allowed us to significantly expand our operating margin.”
Full Year Results
Monster Worldwide reported total revenue of $1,351 million for the year ended 31December, 2007 compared to $1,117 million in 2006, a 21% increase, or 18% before the benefit of foreign exchange rates. Monster Careers revenue grew 24% to $1,195 million compared with $964 million in 2006. Internet Advertising & Fees reported revenue of $156 million, an increase of 2% over the prior year. The Company reported income from continuing operations of $147 million, or $1.13 per diluted share, compared to $154 million or $1.17 per diluted share in the prior year.